Alberta Recreational Property Market Growth

Canmore’s recreational property market continues to surgeAccording to a local realtor, prices are not showing any signs of slowing. This upward trend can be attributed in part to the wave baby boomers seeking active living and retirement destinations.

Although the frenzy seen during the pandemic has eased off, Canmore’s single-family home prices climbed by four percent in 2023, reaching $1.56 million. Similarly, the median standard condominium prices increased steadily from $552,000 per unit in 2020 to around $685,000 per unit in 2023.

Despite being among Canada’s priciest locations for Recreational propertiesCanmore is continuing to grow in home sales. The recreational housing market in particular has risen by 25 percent since 2021. The average price of a single detached home in Canmore was $1,234,000 over this period, showing a steady rise from previous years.

This steady rise in prices is driven by the retiring baby-boomer demographic, which actively seeks locations to maintain a healthy lifestyle. Additionally, Alberta’s influx of newcomers from both domestic and international regions has further fueled this growth. 

The market trends for recreational properties extend beyond Canmore

Prices in other parts of Alberta have increased significantly as well. Recreational property market. Alberta is expected to lead the country in terms of cabin and cottage prices growth by 2023. 

According to a Royal LePage’s 2024 reportThe Demand for lake and mountain homes was high last year. Alberta’s single-family recreational home median price rose by 4.7%. Conversely, B.C. prices remained flat, and Ontario’s dropped by 5.2%. Alberta experienced a slight decrease in waterfront property prices while Quebec, Ontario, B.C., and Alberta all saw slight increases. Drops of over 8% were recorded. 

Pigeon Lake and Wabamun Lake are two areas that have experienced significant growth outside of Canmore in the past year. For instance, the median price of a single-detached recreational property on Wabamun Lake surged by 53.5% to $675,300, for an increase of nearly  $250,000 from 2022, while homes on Pigeon Lake saw a 13.8% increase to $417,000.

Wabamun Lake’s increase was partly due to a few pricier, modernized homes being sold, but also because of increasing demand. Relocations to Alberta from Ontario and B.C. are on the rise. Buyers looking for affordable lakefront properties have added to the competition. 

The COVID-19 pandemic also seems to have re-ignited interest in recreational properties and sustained high demand. These purchases are often cash-based and therefore less likely to be affected by the current high interest rate environment.

Lac St. Anne on the other hand saw an 11.5% decrease and remains the most accessible destination for recreational property in Alberta with single-detached houses averaging $290,000.

Experts believe that these trends could continue. The result is that buyers can expect higher prices and increased competition, while sellers and other investors may benefit from a sustained demand for recreational housing and the increasing property value.